Interim Results

Investment Company PLC
01 December 2006




The Investment Company Plc
Unaudited Interim Results
For the Six Month Period ended 30 September 2006



Chairman's Statement



Although the latest move in base rates was upwards, the impact on the price of
the sort of preference shares which we hold has been muted.  Revenues in the
first half of the company's trading year were as expected.  Your Directors have
declared an interim dividend of 4p per ordinary share (2005: 4p) which will be
paid to shareholders on the register on 15 December 2006.  The shares will be
quoted ex dividend on 13 December 2006 and the dividend will be paid on 15
January 2006.


As explained in my statement of 20 December last year, new accounting standards
have become applicable to Listed Companies in the U.K.  Because such changes
were incorporated in last year's interim figures as well as in the accounts at
31 March 2005, the figures this time required no adjustment and are comparable
with those of which shareholders have previously been advised.  Consequently
your Board has decided (since it is not compulsory) to dispense with any report
by the Auditors, Saffery Champness, on these figures.


Under International Financial Reporting Standards the net asset value of the
ordinary shares at 30 September 2006 (after deducting the Participating
Preference Shares at Redemption Value, which shareholders should note is less
than the quoted market value of such shares) was 276.74p.  This compares with
283.36p per ordinary share at 31 March 2006 and 250.49p at 30 September 2005.


A year ago your company had an overdraft of over £1 million.  The takeover of P
& O, a bid from Persimmon the parent company of a Charles Church group company
in which we were a minority preference shareholder, and most recently the take
over of Hardys and Hanson by Greene King has resulted in your company enjoying
at the time of writing cash balances in excess of £450,000.


Despite the rise in short term interest rates and the general feeling amongst
your Directors that the conventional rate of inflation promulgated by HM
Treasury is way below their own experience, your Board recognises the inherent
value in the fixed coupon preference shares which form the major part of your
company's portfolio of investments and looks forward to the immediate future
with confidence.

The market in your company's Ordinary shares is very illiquid with few shares
changing hands although business in the participating preference shares is more
frequent.  Your Board would like to remind shareholders that it has their
approval to make market purchases of both classes of share.


On 9 November 2006 your Directors appointed Philip Lovegrove OBE to the Board. 
Philip was, until your Company acquired it in March 2005, a Director of our then
parent company New Centurion Trust Limited.  He has been appointed Chairman of
our Audit Committee.



Sir David Thompson Bt.
Chairman
1 December 2006




CONSOLIDATED INCOME STATEMENT

For the six months ended 30th
September 2006
                                                    Half-year to          Half-year to              Year to
                                                            30th                  30th                 31st
                                                       September             September                March
                                                            2006                  2005                 2006
                                                     (unaudited)           (unaudited)            (audited)
                                        Notes                  £                     £                    £
Total income                                             449,944               590,034            1,010,351
Expenses                                               (184,539)             (230,215)            (439,912)
Loan note interest                                      (91,425)             (103,323)            (194,748)
Bank interest                                               (76)              (11,724)             (27,636)
Net revenue before taxation                              173,904               244,772              348,055
Taxation                                                       -              (15,602)              (5,200)
Net revenue, after taxation                              173,904               229,170              342,855
Dividends:  Participating preference        4          (174,818)             (218,218)            (470,971)
                   Ordinary                 4           (96,370)              (77,216)            (154,191)
Transfer from reserves                                  (97,284)              (66,264)            (282,307)

(Losses)/earnings per 50p Ordinary
Share
Basic                                       3             (0.03)   p              0.30   p           (3.51)   p
Adjusted                                    3             (0.05)   p              0.57   p           (6.64)   p

Net asset value per 50p Ordinary Share                    276.74   p            250.49   p           283.36   p
All of the Company's operations are continuing.





CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30th September 2006
                                                                                                                        
                                               Capital
               Share     Share     Own Shares  Redemption  Revaluation  Capital    Revenue
              Capital    Premium      Held      Reserve     Reserve    Reserve     Account      Total
                 £         £           £           £           £          £          £           £

Balance at                                                                                                              
30th
September                                                                                                               
and 1st
October 2004  4,566,695    -           -      2,439,800     144,501 3,717,357     581,235  11,449,588

Ordinary                                                                                                                
shares
issued         424,686     -           -              -          -         -            -     424,686

Premium on                                                                                                              
new shares
issued               -  1,019,246      -              -          -         -            -   1,019,246

Own shares           -     -   (2,919,861)            -          -         -            -  (2,919,861)                  
held                 

Realised             -     -           -              -          -   410,127            -     410,127
capital
gains/
(losses)

Movement in          -     -           -              -     446,120         -           -     446,120
unrealised
appreciation
of investment

Retained             -     -           -              -          -          -    (432,166)   (432,166)
earnings for
the period

Balance at   4,991,381 1,019,246 (2,919,861)   2,439,800     590,621 4,127,484     149,069  10,397,740
31st March &
1st April
2005

Cancellation         -     -           -      (2,439,800)        -          -    2,439,800           -
of capital
redemption
reserve

Cancellation  (50,000)     -           -          50,000         -          -           -            -
of deferred
shares
Buy in of    (621,500)     -           -         621,500         -          -   (1,281,589) (1,281,589)
own shares

Realised             -     -           -               -         -     502,744          -      502,744
capital
gains/
(losses)

Movement in          -     -           -               -     270,015        -           -      270,015
unrealised
appreciation
of investment

Retained             -     -           -               -         -          -      (66,264)    (66,264)
earnings for
the period

Balance at   4,319,881 1,019,246 (2,919,861)     671,500     860,636 4,630,228    1,241,016   9,822,646
30th
September
and 1st
October 2005

Realised             -     -           -               -         -     943,331           -      943,331
capital
gains/
(losses)

Movement in          -     -           -               -    (93,598)         -           -      (93,598)
unrealised
appreciation
of
investment

Retained             -     -           -               -          -          -      (216,043)   (216,043)
earnings for                                                                                                            
the period                                                                                                              
                                                                
Balance at   4,319,881 1,019,246 (2,919,861)     671,500    767,038  5,573,559      1,024,973  10,456,336
31st March &
1st April
2006

Realised             -     -           -               -          -      46,715           -        46,715
capital    
gains/
(losses)

Movement in          -     -           -               -    (77,075)         -            -       (77,075)
unrealised
appreciation                                   
of investment

Retained             -     -           -               -          -          -        (97,284)     (97,284)
earnings for                                                                                                            
the period      

Balance at   4,319,881 1,019,246 (2,919,861)     671,500     689,963 5,620,274         927,689   10,328,692
30th
September
2006





CONSOLIDATED BALANCE SHEET

At 30th September 2006
                                                    30th September      30th September          31st March
                                                              2006                2005                2006
                                                       (unaudited)         (unaudited)            (audited)
                                                                 £                   £                    £
 Non-current assets
 Portfolio investments at cost                          12,575,979          13,654,654           12,391,868
 Unrealised appreciation                                   718,727             889,401              795,802
 Portfolio investments at market value                  13,294,706          14,544,055           13,187,670
                                                        
 Current assets
 Trade and other receivables                                41,524              11,645              121,000
 Current asset investments                                  43,723             321,575               81,224
 Cash at bank                                              927,200              98,448            1,048,962
                                                         1,012,447             431,668            1,251,186
 Current liabilities
 Bank overdraft                                                  -           1,029,589                    -             
 Dividends                                                 174,818             218,218              174,818
 Trade and other payables                                  146,639             248,266              150,698
                                                           321,457           1,496,073              325,516

 Net current assets/(liabilities)                          690,990          (1,064,405)              925,670

 Non-current liabilities
 Loan notes                                            (3,657,004)          (3,657,004)          (3,657,004)
                                                       
 Net assets                                             10,328,692           9,822,646           10,456,336
                                                        

 Capital and reserves
 Called up share capital                                 4,319,881           4,319,881            4,319,881
 Share premium                                           1,019,246           1,019,246            1,019,246
 Own shares held                                       (2,919,861)         (2,919,861)          (2,919,861)
 Capital redemption reserve                                671,500             671,500              671,500
 Revaluation reserve                                       689,963             860,636              767,038
 Capital reserve                                         5,620,274           4,630,228            5,573,559
 Revenue reserves                                          927,689           1,241,016            1,024,973
 Shareholders' funds                                    10,328,692           9,822,646           10,456,336
                                                        






CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30th September 2006


                                         Half-year     Half-year       Year to
                                                to            to
                                              30th          30th    31st March
                                         September     September
                                              2006          2005          2006
                                       (unaudited)   (unaudited)     (audited)
                                 Notes           £             £             £
Operating activities
Cash received from                         348,687       521,954       927,335
investments
Interest received                           98,937        58,678       108,325
Sundry income                                    -        26,400        26,400
Cash paid to and on behalf                (86,129)      (97,014)     (184,403)
of employees
Other cash payments                      (113,825)     (177,374)     (282,126)
UK corporation tax paid                          -             -       (5,200)
Net cash inflow from                       
operating activities                       247,670       332,644       590,331

Financing activities
Interest paid                                 (76)       (8,924)      (30,636)
Loan note interest paid                   (91,425)      (82,658)     (194,748)
Non-equity dividends paid                (174,818)     (218,218)     (514,371)
Net cash outflow from returns on         
investments and servicing of finance     (266,319)     (309,800)     (739,755)

Investing activities
Purchase of investments                (1,202,698)     (932,967)   (1,227,754)
Further payment in respect of purchase           -      (34,655)      (34,655)
of subsidiaries
Cash acquired with                               -             -             -
subsidiary
Buy in of own shares              5              -   (1,281,589)   (1,281,589)
Sale of investments                      1,193,653     1,555,627     4,142,985
Net cash (outflow)/inflow from capital     
expenditure and financial investment       (9,045)     (693,584)     1,598,987

Equity dividends paid                     (94,068)      (14,055)     (154,255)

(Decrease)/increase in cash       6      (121,762)     (684,795)     1,295,308





NOTES TO THE INTERIM REPORT

1    Financial information
     The financial information above does not constitute statutory accounts
     within the meaning of Section 240 of the Companies Act 1985. Statutory
     accounts for the year ended 31st March 2006 have been delivered to the
     Registrar of Companies and contain an audit report in accordance with
     Section 285 which was unqualified.


     The interim financial information has not been audited or reviewed by the
     Company's auditors.

2    Accounting policies
     These financial statements have been prepared in accordance with
     International Financial Reporting Standards (IFRSs).

     The prior period comparatives reflect the advantage taken by the Group of
     the exemption under IFRS 1 First-time Adoption of IFRS not to apply IFRS 3
     Business Combinations retrospectively to past business combinations
     (business combinations that occurred before the date of transition to IFRS).
     The Group has complied with IAS 34 and IFRS 1 in the preparation of these
     interim statements. The following are the key accounting policies extracts
     relating to the financial information presented and the effects of the
     transition to IFRS:

 (a) Taxation
     Current tax is provided at amounts expected to be paid (or recovered) using
     the tax rates and laws that have been enacted or substantially enacted by
     the balance sheet date.

     Deferred tax is recognised in respect of all timing differences that have
     originated but not reversed at the balance sheet date where transactions or
     events that result in an obligation to pay more tax in the future or a right
     to pay less tax in the future have accrued at the balance sheet date. Timing
     differences are differences between the Group's taxable profits and its
     results as stated in the financial statements that arise from the inclusion
     of gains and losses in tax assessments in periods different from those in
     which they are recognised in the financial statements.

     The company has material tax losses available for relief against future
     profits and gains, resulting from accumulated unrealised losses on certain
     investments and excess management expenses. No deferred tax asset has been
     provided for on the basis that future profits or gains are uncertain.

 (b) Preference shares
     The participating preference shares entitle the holders, in priority to the
     payment of any dividend to the holders of all or any other shares in the
     capital of the company, to a fixed net cash cumulative dividend at the rate
     of 7p per share per annum. In addition, holders are entitled to a
     participating dividend at the rate of 25% of any dividends paid on the
     Ordinary Shares in excess of 2p per share for any year, subject to a maximum
     participating dividend in respect of any year of 3p net per share.

     On any return of capital holders are entitled to a premium of 50p per share
     in addition to the nominal value of 50p on any surplus assets. The shares
     also confer voting rights in certain circumstances.

     The participating preference share capital has been treated as an equity
     financial instrument in accordance with IAS 32.

 (c) Dividends
     Ordinary dividends are accounted for in the period in which they are
     declared in accordance with IAS 10. Preference dividends have two dividend
     elements, the fixed net cash cumulative dividend and the participating
     dividend.

     The participating dividend element is accounted for in the period in which
     the dividend is declared and is treated in the same way as the Ordinary
     dividend upon which its calculation is based.

     The fixed net cash cumulative element accrues evenly on a daily basis
     throughout the period. The dividend payable on 1 October 2006 has therefore
     been treated as a charge against revenue for the six months to 30th
     September 2006.

     This basis overrides IAS 10 as, in the opinion of the directors, the
     dividend has accrued on a daily basis during the six months ended 30th
     September 2006.

 (d) Investments
     IAS 39 requires investment funds to measure assets listed on a recognised
     Stock Exchange at current bid prices whereas under UK GAAP these assets have
     been previously measured at current middle market prices.

     The directors are of the opinion that the bid valuation is 1% lower than the
     mid valuation due to the nature of the assets concerned and this adjustment
     has been reflected in the investment valuation for the period ended 30th
     September 2006.

     All investments held as non-current assets are shown in the balance sheet at
     valuation and all purchase and sale of investments are accounted for at
     trade date. The difference between book cost and valuation is taken to the
     revaluation reserve. Profits and losses on the realisation of investments
     held as non-current assets are taken to capital reserve.



3   Earnings per Share                   Half-year to   Half-year to        Year to
                                                 30th           30th           31st
                                            September      September          March
    The calculation of basic                     2006           2005           2006
    earnings per share is based on
    the following:                         (unaudited)    (unaudited)     (audited)
                                                    £              £              £
    Revenue after taxation                    173,904        229,170        342,855
    Participating preference                (174,818)      (218,218)      (470,971)
    dividend
                                                (914)         10,952      (128,116)

    Weighted average number of              3,644,956      3,646,956      3,645,959
    Ordinary Shares of 50p each

    The calculation of the adjusted earnings per share is based on the following:

    Weighted average number of shares being all ordinary voting shares but
    excluding non-voting shares:

    Weighted average number of              3,644,956      3,646,956      3,645,959
    Ordinary Shares of 50p each
    Shares reclassified as                 (1,717,565)    (1,717,565)    (1,717,565)
    non-voting shares
                                            1,927,391      1,929,391      1,928,394



4   Dividends                            Half-year to   Half-year to        Year to
                                                 30th           30th           31st
                                            September      September          March
                                                 2006           2005           2006
                                           (unaudited)    (unaudited)     (audited)
                                                    £              £              £
    Interim Dividends declared or accrued
    Participating preference shares                 -              -        296,153
                                                    -              -        296,153
    Final dividends declared or
    accrued
    Participating preference shares           174,818        218,218        174,818
    Ordinary shares                            96,370         77,216        154,191
                                              271,188        295,434        329,009

    Total dividends                           271,188        295,434        625,162



5   Buy in of own shares                 Half-year to   Half-year to        Year to
                                                 30th           30th     31st March
                                            September      September
                                                 2006           2005           2006
                                          (unaudited)    (unaudited)      (audited)
                                                    £              £              £
    Buy in of 1,240,000 preference                  -      1,275,509      1,275,509
    shares of 50p each
    Buy in of 3,000 ordinary shares                 -          6,080          6,080
    of 50p each                                     -      1,281,589      1,281,589




6   Analysis of net debt                           At                            At
                                                 30th                           1st
                                            September                         April
                                                 2006                          2006
                                          (unaudited)      Cash flow
                                                    £              £              £
    Bank overdraft                                  -              -              -
    Cash at bank                              927,200      (121,762)      1,048,962
                                              927,200      (121,762)      1,048,962
    Long term debt                        (3,657,004)              -    (3,657,004)
                                          (2,729,804)      (121,762)    (2,608,042)



                      This information is provided by RNS
            The company news service from the London Stock Exchange